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creditors’ ledger


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A memorandum ledger account in which individual creditors’ accounts are recorded; it is additional to the nominal ledger and forms part of the internal control system. In each individual creditor’s account there is a record of the purchases made (credit), payments made (debit), discounts received (debit), and returns outwards (debit). The total sum of all the creditors’ ledger accounts is periodically extracted and compared to the total on the creditors’ ledger control account as part of the internal control system. The total of the individual creditors’ ledger accounts should always equal the creditors’ ledger control accounts; any differences that do occur must be investigated.

Subjects: Accounting.


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